L&T may go up by 15% to 20% in next 12-18 months: K R Choksey Securities

In a chat with ET Now, Deven Choksey, MD, K R Choksey Securities, shares his views on L&T.

ET Now: What explains the recent outperformance in L&T, the stock is up more than 46% this year, investment cycle has broken down, corporate India has they have reduced their capex plan, the guidance from L&T was not all that strong but the stock is up 46%?

Deven Choksey: All of this are negative and they are certainly factored-in as far as the economy is concerned and as far as some of the capital goods companies like L&T is concerned. The L&T is getting more weight into the portfolio that is the first point from the portfolio side. The second point, currently bigger amount of projects have been stalled for variety of reasons including environmental reason and the government is promising to get rid of this particular reasons by way of taking suitable measures on that front and this is raising the optimism that if not yesterday from tomorrow onwards you would probably see higher amount of orders coming in to the books of L&T and that is where the preference has started going into the stock. There is good possibility of the stock sustaining at current levels and may be with the order inflow coming in you could possibly see better times going forward. The stock certainly deserves 15% to 20% upside over 12 to 18 months from current period now onwards.